India’s deep-tech startup HYDGEN has secured $5 million in a pre-Series A funding round to accelerate its mission of making hydrogen production more affordable and accessible. The company develops advanced electrolyser technology that enables industries to generate hydrogen directly at their sites, cutting both costs and carbon emissions.
Transition Venture Capital led the round. Cloudberry Pioneer Investments from Europe, Moringa Ventures from Singapore, and several family offices from India and Singapore also participated. The mix of investors shows growing global confidence in India’s ability to drive meaningful innovations in the green-energy space.
HYDGEN’s Core Innovation: On-Site Hydrogen Generation
HYDGEN develops electrolysers that split water into hydrogen and oxygen using electricity. Instead of relying on fossil fuels or large centralized hydrogen plants, HYDGEN’s approach allows industries to produce hydrogen “on demand” at their own facilities. The company’s proprietary Anion Exchange Membrane (AEM) electrolyser technology lies at the heart of this transformation.
The AEM design merges the cost advantages of alkaline electrolysis with the high efficiency of Proton Exchange Membrane (PEM) systems. It removes the need for expensive noble metals such as platinum or iridium, which typically raise costs in PEM systems. By optimizing materials and system design, HYDGEN makes electrolysers cheaper to manufacture, operate, and maintain.
This technology enables the production of ultra-pure hydrogen without depending on centralized supply chains. Industries can install modular units ranging from small 1 kW setups to 250 kW stacks that fit a range of industrial requirements. This flexibility opens doors for small manufacturers as well as large industrial plants.
A Shift Toward Cost Efficiency
The biggest challenge in the hydrogen economy remains cost. Producing green hydrogen through electrolysis currently costs two to four times more than hydrogen made from natural gas. Transporting hydrogen adds even more expense because hydrogen requires compression, liquefaction, or conversion into derivatives like ammonia or methanol.
HYDGEN addresses this problem by eliminating transportation altogether. The startup enables “point-of-use” generation, meaning companies can produce hydrogen exactly where they need it. This strategy avoids logistics costs, reduces carbon leakage from transport, and improves reliability.
Manufacturers who switch to HYDGEN’s system no longer depend on external suppliers or tanker deliveries. They gain full control over purity, quantity, and timing. Over time, that independence can lead to major cost reductions, especially as renewable electricity becomes cheaper.
The Road Ahead: Expanding Manufacturing and Markets
HYDGEN plans to use the newly raised $5 million to upgrade its manufacturing facility in Mangaluru, India. The team intends to move toward semi-automated production, which will improve consistency and scalability. The company will also invest in expanding its stack capacity and deploying demonstration units for early industrial clients.
The leadership team aims to make India a hub for advanced electrolyser manufacturing. India already offers advantages such as low production costs, skilled engineering talent, and a strong renewable-energy ecosystem. HYDGEN’s expansion could strengthen India’s position in the global green hydrogen supply chain.
Beyond India, the company plans to enter Japan, Europe, and the Middle East. These regions already support strong hydrogen policies and incentives. Japan views hydrogen as a key part of its carbon-neutrality roadmap. Europe’s Green Deal commits billions to hydrogen infrastructure, while Gulf countries such as Saudi Arabia and the UAE are investing heavily in clean-energy diversification.
By positioning itself across these markets, HYDGEN can capture early demand and demonstrate the performance of its AEM technology under different industrial and climatic conditions.
Why Investors See Potential
The participation of global investors signals confidence in deep-tech hardware solutions for climate challenges. Most venture funding in recent years has focused on software or fintech. Deep-tech hardware often struggles to attract early-stage funding because it requires longer development cycles and higher capital intensity.
However, the global push for net-zero emissions creates an urgent need for practical, scalable clean-energy technologies. Investors now recognize that solving climate challenges requires breakthroughs in materials science, manufacturing, and energy systems—not just digital optimization.
Transition Venture Capital’s lead investment reflects that belief. The firm focuses on climate-tech companies that can deliver measurable emission reductions. Its backing provides HYDGEN with both capital and strategic guidance for scaling operations and forming partnerships with energy players and industrial customers.
The Growing Hydrogen Opportunity
Hydrogen sits at the center of global decarbonization plans. It can power industries that cannot easily electrify, such as steel, cement, and fertilizers. It can also fuel heavy transport, shipping, and aviation. Analysts expect global hydrogen demand to rise sharply by 2030 as more countries implement carbon-reduction mandates.
India launched its National Green Hydrogen Mission to make the country a global hub for hydrogen production and export. The government targets an annual production capacity of five million metric tons by 2030. The mission also aims to reduce fossil-fuel imports and cut carbon intensity in hard-to-abate sectors.
HYDGEN aligns directly with these national objectives. Its localized hydrogen generation supports industrial decarbonization and energy security simultaneously. By reducing dependence on imported hydrogen or fossil-fuel-derived alternatives, the company helps India build a self-reliant clean-energy ecosystem.
Technical Strength and Market Fit
HYDGEN’s AEM technology provides several technical advantages beyond cost savings. The design uses non-precious metal catalysts, which makes scaling production easier. The system can operate efficiently at lower pressures, reducing wear and extending equipment life. It also produces hydrogen at high purity levels, suitable for sensitive industrial and energy applications.
Because the system works modularly, companies can start small and expand capacity as their hydrogen needs grow. This flexibility reduces upfront investment risk. It also makes the technology suitable for distributed generation—whether in remote factories, ports, or research facilities.
HYDGEN engineers continue to refine stack performance, efficiency, and durability. The company’s next phase will likely focus on optimizing lifetime operation costs and integrating renewable-energy inputs such as solar and wind.
Market Challenges Ahead
Despite strong potential, the path to widespread adoption remains demanding. Electrolyser manufacturing requires precision and quality control at every stage. HYDGEN must prove that its AEM systems can perform reliably under industrial conditions for years without major maintenance.
The company must also navigate certification requirements, especially in export markets like Europe and Japan. Hydrogen used in industrial and fuel-cell applications must meet strict purity and safety standards. Demonstrating compliance and long-term stability will help HYDGEN win customer trust.
Competition adds another layer of pressure. Global players such as Nel Hydrogen, Plug Power, and ITM Power already dominate parts of the market. However, these firms primarily focus on large-scale centralized plants. HYDGEN can differentiate itself through its decentralized, modular approach tailored for developing economies and smaller industrial users.
The Bigger Picture
HYDGEN’s progress represents more than just another funding announcement. It reflects a shift in India’s startup ecosystem toward solving hard engineering problems that have global impact. As the world races to decarbonize, the ability to make hydrogen production cheaper, cleaner, and more accessible will define new industrial frontiers.
HYDGEN’s journey demonstrates how deep-tech entrepreneurship can blend scientific innovation with commercial execution. The company brings together material science, manufacturing, and systems engineering to solve one of the toughest challenges in clean energy.
If HYDGEN succeeds in scaling its AEM technology and proving its long-term cost advantage, it can open a path for widespread hydrogen adoption across Asia and beyond. The company stands at the intersection of sustainability, energy independence, and industrial innovation—a place where India’s next big wave of technological leadership could emerge.
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